"MUST BE CAREFUL"

Evening Post, Volume CVI, Issue 27, 1 August 1923, Page 5

"MUST BE CAREFUL"

PENSION CHARGES

PRIME MINISTER'S WARNING

SOCIAL INSURANCE SCHEME

ADVOCATED,

That New Zealand would have to be careful in respect to further pension commitments was emphasised by the Prime Minister in the House of Eepresentatives yesterday afternoon when, after the National Provident Fund report had been brought down, members urged that steps should be taken to investigate the possibility of introducing a social insurance scheme. Mr. Massey pointed out that superannuation and pension charges had'grown so enormously that they were causing.the officers of the Treasury particular anxiety. The Leader* of the Opposition (Mr. T. M. Wilford) wanted to know how the National Provident Fund Department was working, .and what were its relations with the friendly societies. The Department was a, little plant now, but would grow into a huge tree. LAGGING BEHIND? The Hon. J. A. Hanan (Irivercargill) suggested the setting up of a Committee to go into the question of social insurance. In this respect New Zealand was lagging behind other countries. At one time New Zealand led the way in social reforms, and now that there was so much unrest it was at least time that the Dominion should investigate the question of social insurance. Australia had done more than New Zealand in connection with accident insurance and insurance for the blind. Unless the Dominion was going to move on advanced lines there was going to be trouble. Some definite information should be given as to what the Government intended to do in the matter. ■ "NOT IN THE SAME STREET." The Prime Minister (the Right Hon. W. F. Massey) stated that neither Great Britain Ivor America was in the same street as New Zealand in connection with matters raised by Mr. Hahan. New Zealand needed to be careful. Superannuation and pension charges had grown so enormously that they were causing the officers of the Treasury particular anxiety. While tilings were good it was all right. But if there came a cycle of bad Seasons there would be danger of the whole scheme breaking down. He had done his best to keep down expenditure. Mr. Hanan: "Why not investigate the whole subject?"

Mr. Massey: "It has been investigated. I am afraid the hon. member does not read the papers that come before the House." A Liberal member: "That's bluff." Mr. T. K. Sidey (Dunedin South) referred to the introduction of the National Provident scheme, arid said it was gratifying to know that it had grown so much. He understood that there was not now any antagonism between the friendly societies and the Department. Mr. Massey, added Mr. Sidey, had gone to the country with schemes of insurance against sickness and unemployment. . Mr. Massey: "We have gone through the greatest war in history since then." Mr. Sidey: "The war hadn't started then." Mr. Massey had'appealed to the Workere to come over to Reform after adopting the plank the speaker hail mentioned, but the Government had done nothing. The question was a most important one. There Were times when everybody could not be employed, and he thought some scheme of insurance should be provided for the unemployed. Queensland had put an Act oh the Statute Book in the last year or two to insure people against sickness and unemployment. Despite what had occurred in New Zealanij in the matter of unemployment, this country had done nothing but meet the position with borrowed money. GOVERNMENT AND PROMISES. "Of course," remarked Mr. A. J. Lea (Auckland East), "we all know that the Government did make promises in regard to insurance against sickness and unemployment, but_it was then facing the electors. But I don't think anybody in this House honestly believed that the Government would redeem its promise. It is not customary for the Government to 'do that.", Unemployment and Sickness insurance schemes were necessary, but to give doles to jobless men was riot nearly so important as ensuring that the workers would have jobs. He would like to see a scheme oil the lines of the British scheme introduced, 'and now that the Government was iii . the winter its day politically, it ought to. do something in the mariner suggested. 'OCCUPATIONAL DISEASES. . Mr. W. A. Vfeitch (Wanganiii) contested thb assertion of the Prime Minister that the. meriibers of the Opposition did not .read departmental reports. Everyone knew that gi-eiit care must be exercised in introducing great schemes such as tlia.t proposed, otherwise they would fail. Soldiers who had lost their, pensions should have work provided for them. The Prime Minister had indicated that the present was not a time to go in for such a scheme, but all that was . suggested .was. that a ; Committee should.take evidence and draft a scheme for submission to the House. There was room for a step forward in connection with occupational diseases. Industries should be made to contribute from their profits towards the maintenance of those who contracted diseases due to, the nature of their calling. In fact, there was need to provide for workers who might meet with misfortune in the course of. their..employment. Mr. P. Fraser (Wellington Central) said he was convinced that there was nothing more urgent than the solution of the unemployment problem. He did not say that the Queensland scheme was perfect^ but New Zealand should be guided by the experience, gained there, and take the opportunity of trying to solve the industrial problem permanently. There was no encouragement under the Queensland Act for the man who did not want to work. He knew that the problem could not be faced this "session, but he would like to see something done in the recess with a view of bringing in a measure next session. i. SOME ; CONTRIBUTORY SYSTEM. The Minister of Labour (the Hon. G. J. Anderson) stated that lie intended, during the recess,, to go into the whole question of unemployment insurance and pensions generally. He. had announced that already. There must be some, contributory system in regard to social insurance generally. So far as unemployment was concerned, it was not so b;id to-day.as at this time last year., The Minister in CiYarge of the National Provident Fund (the Hon. Sir R. Heatbn Rho'dfes) said he acknowledged that the problems raised during the debate we're gVeat, but he libped tiiat the Dominion would be able to grapple with tiiein with greater success than other countries had achieved. He had no 'doubt thai a further actuarial investigation woulil show the -Nationall Provident Fund to be Sound, fqr it now 'stood At £703,143, hiiyItife increased by £160,000 during the yeaiu